Synchrony Financial (SYF) Q4 2025 earnings summary

Executive summary

• Delivered strong Q4 2025 results with net earnings of $751M ($2.04/diluted share), including a restructuring charge for early retirement, and full-year net earnings of $3.6B, supported by digital growth and partner expansion.

• Achieved record Q4 purchase volume of $49.5B, up 3% YoY, with nearly 70M customers engaged and over 20M new accounts added in 2025.

• Expanded and renewed over 75 partnerships in 2025, including major deals with Walmart, Lowe's, Bob's Discount Furniture, and Polaris.

• Enhanced digital and product offerings, including Pay Later, AI-driven Marketplace, and digital wallet, driving higher engagement and sales.

• Returned $3.3B in capital to shareholders in 2025 through dividends and share repurchases, growing book value per share by 13%.

Financial highlights

• Q4 net earnings were $751M ($2.04/diluted share), with net interest income up 4% to $4.8B and net interest margin rising to 15.83%.

• Full-year 2025 net earnings reached $3.6B ($9.28/diluted share), ROAA of 3.0%, and ROATCE of 25.8%.

• Net revenue for Q4 was $3.8B (flat YoY); provision for credit losses decreased to $1.4B, with net charge-offs down $294M.

• Efficiency ratio for Q4 was 36.9%, up 360 bps YoY, mainly due to higher expenses and restructuring costs.

• Book value per share increased 13% to $44.74; tangible book value per share up 9% to $37.21.

Outlook and guidance

• 2026 guidance assumes stable macro environment, 2% GDP growth, 4.8% year-end unemployment, and Fed funds rate at 3.25%.

• Expects mid-single-digit ending receivables growth and EPS of $9.10–$9.50, with continued investment in digital and product innovation.

• Net charge-off rate expected to remain within 5.5%-6% long-term target.

• Guidance assumes no major regulatory changes and continued disciplined underwriting and expense management.